Sensex jumps over 100 points, Nifty tops 25,100; auto stocks lead gainers

Indian benchmark equity indices opened higher on Wednesday, tracking gains in other Asian markets amid signs of progress in trade talks between the US and key partners such as India and China.

The BSE Sensex was trading 106 points, or 0.13%, higher at 82,498. The Nifty50 was up 33 points, or 0.13%, trading at 25,136 around 9:30 am.

From the Sensex pack, M&M, Reliance Industries, Eicher Motors, HCL Tech, and Bharti Airtel opened with gains, while Kotak Mahindra Bank, HDFC Bank, Power Grid, L&T, and IndusInd Bank opened with losses.


Elsewhere in Asia, markets opened higher, with the MSCI Asia ex-Japan index rising 0.4%, following reports of an agreement between US and Chinese negotiators on a trade deal framework in London, pending approval by their respective leaders.

Back home, Indian and US officials reportedly made progress in bilateral trade talks held in New Delhi, discussing key areas such as industrial goods, agriculture, tariff reductions, and non-tariff barriers, according to media reports.

On the sectoral front, Nifty Bank, Financial Services, FMCG, and IT indices declined 0.2%, while Nifty Auto, Metal, Realty, and Oil & Gas opened 1.4% higher.

Among individual stocks, CreditAccess Grameen jumped 4.5% after the company raised $100 million through external commercial borrowings from a group of banks across South Asia and the Far East.

Meanwhile, shares of liquor companies, including United Spirits, United Breweries, and Allied Blenders and Distillers, fell up to 6% after the Maharashtra government approved sweeping changes to liquor taxation and regulations aimed at boosting excise revenues.

Also read: SP Group offers $3.4 billion NCDs to HNI investors amid market volatility

Experts View

"Market is likely to continue in the consolidation range with a slight upward bias. A clear breakout above Nifty 25100 level, and sustaining above this level, will need sustained large buying. This can happen on positive news regarding a US-China trade deal," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

"In the near term the market will respond to news regarding the trade negotiations. If there is a clear agreement, the market will respond positively, and there is a high probability of Nifty breaking above 25100 and remaining above this level. Liquidity will support a mild rally. But a strong rally needs earnings support. There are no indications yet about a strong recovery in earnings. This will cap any short-term rally in the market," he added.

Devarsh Vakil, Head of Prime Research, HDFC Securities, said, "The positional trend remains bullish, with support seen in the 24900-25000 band for the Nifty. On the upside, the 25,200 level could offer immediate resistance, as the market looks to digest recent gains."

Global Markets

Share markets and the dollar on Wednesday offered a guarded welcome to the latest signs of progress in U.S.-China trade talks, while awaiting more detail of what was decided and whether it would stick for long.

Investors, who have been badly burned by trade turmoil before, offered a cautious response and MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%.

Japan's Nikkei added 0.4% and Australian stocks firmed 0.4%. EUROSTOXX 50 futures, FTSE futures and DAX futures were all down 0.2%, while S&P 500 futures and Nasdaq futures both lost 0.1%.

FII/DII Tracker

FIIs (Foreign Institutional Investors) continued their buying spree for the third consecutive session, with net purchases of Rs 2,301 crore on June 10. Meanwhile, DIIs (Domestic Institutional Investors) maintained their positive stance for the 16th straight session, investing Rs 1,113 crore.

Also read: United Spirits, other liquor stocks slide up to 6% after Maharashtra hikes excise duties

Oil Prices Soften

Oil prices softened in Asian trade on Wednesday as markets assessed the outcome of U.S.-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market.

Brent crude futures declined 19 cents, or 0.3%, to trade at $66.680 a barrel, while U.S. West Texas Intermediate crude fell 16 cents, or 0.3%, to $64.82 at 0318 GMT.

Rupee vs Dollar

The Indian rupee rose 9 paise to 85.48 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, surged 0.03% to 99.13 level.

(With inputs from agencies)